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Friday, 12 June 2015

New Zealand Labour Party​ when first
elected in 1935 implemented a real house price vs average income bubble solution of issuing sovereign
public credit, to build state housing at cost price only, without the
impost of private owners of banks interest charges, that can, and
should be done again today, for the very same reasons.

But the New Zealand Labour Party of
today in the main have not a clue of the party's very founding ideals
of money system reform, that is chronicled below;

Michael Joseph Savage in his 1920
maiden speech to parliament;

“The Government should create a state
bank , and use the public credit for the public good as an
alternative to borrowing overseas”

1933 manifesto wanted the state "to
be sole authority for the issue of credit and currency" and in
1935 MP John A Lee wrote "The Labour Party affirmed that the
government should have the sole right over the issue and control of
new credit"

Man to Man by Tom Skinner 1981 –
Michael Savage explained the State housing scheme to Tom Skinner of
the (New Zealand) Federation of Labour as such;

Pg 45 – “I was with Joe on one
occasion when he began chatting about the ramifications of the
Governments State Housing Scheme. He told me … how the construction
of those houses created assets in a productive way. The Government
created the money through the Reserve Bank at a moderate rate of
interest to cover the contract price, which paid for materials,
tradesmen’s wages, the purchase and development of the land and all
the other essentials required to finish the house. On completion the
house was transferred from the Housing Division of the public works
department to the State Advances Corporation – in effect from one
department to another. The corporation was the renting agency
responsible for selecting the tenants, collecting rents and
maintaining the house and the property.

The philosophy was that as the money
was created for productive purposes no loss could occur if it were
not repaid from one department to another. Meanwhile, during
construction, tradesmen had been paid wages which had been spent and
absorbed into the economy. But it was solid money backed by the
creation of assets. People had been kept fully employed while the
government built homes for the people.

Tom Skinner;

“While Joe spoke I began suddenly to
grasp the Labour philosophy related to the creation of credit. It set
me off thinking about money and what it meant to the economy. The
Government, figuratively speaking, could rub a state house debt out
of the books because a building stood in its place. But money created
by the banks in order to gain profits in the form of interest was the
other side of the coin. It was unproductive, inflationary creation of
money if unmatched by equivalent goods and services…..”

“I have read and believe that
monetary mismanagement is the greatest evil of our time. It breeds
injustice, increased costs and, as the root cause of inflation, it
diminishes the value of our money. Governments should carry out their
pre-election promises and take the necessary steps to reform the
monetary system. It can be done only by making the State the sole
authority for the issue of currency and credit….. unfortunately, in
this area politicians seem to be abysmally ignorant of elementary
financial and economic truths.”

From The Cradle To The Grave – A
biography of Michael Joseph Savage (First New Zealand Labour Party
Prime Minister 1935-1940) by Barry Gustafson 1986;

“This places them in a unique
position, the houses after erection carry no interest on capital
cost, and for instance a thousand pound house can be let for 5s per
week and be a financial success. The millennium seems to have arrived
and it makes one wonder why we had to struggle in the bog, when there
was such an easy way out of our troubles, houses, after being built
with the highest paid workers in the world, at the lowest cost heard
of, makes our policy of orthodox finance seem almost prehistoric.”

1954 Labour Party manifesto stated
"Labour will take immediate and effective to ensure that the
state will become the sole authority for the issuance of credit and
currency. The public credit will be used to the fullest extent
compatible with the public good"

In July 1962 the leader of the Labour
Party, the Rt. Hon. W. Nash, made a lengthy statement in which he
said;

“Consistent with the needs of a sound
economy, the State should create and use credit at the cost of issue
for purposes of approved capital development. We are satisfied that
the use of Reserve Bank Credit, within the limits set out is not only
justified, but has already contributed much towards the Nation’s
economic well-being.”

Thus, 27 years too late, Nash accepted
the policy on which Labour was elected in 1935.

1964 Labour Party manifesto stated
"Labour believes that measures taken before credit is issued are
more effective than restrictions afterwards."

Former New Zealand Labour Party
Minister of Finance Minister of Finance - 10 December 1999 > 19
November 2008 - Michael Cullen - said this in 2012;

'Govt wouldn't let the big banks fall
over'

And in terms of the big banks, he says
there has always been "a degree of pretence" around the
idea the government didn't stand behind them.

"If they were systemically
important in reality the government couldn't afford to let them fall
over. But no Minister of Finance is ever going to say that as
Minister of Finance. It's only when they're old and clapped out and
out of a job that they can actually say that."Yet New
Zealand Labour still put Michael Cullen up on a pedestal and New Zealand
National Party appoint him to run government departments in
preparation for privitisation, go figure?

I
have spent many hours, over many years, discussing with Andrew Little
the crazy colonial era shortcomings of the money system funding
structures of New Zealand that we still suffer. Of which his personal
views are perhaps best summed up in a conversation by text we had
that occurred after several scheduled phone calls had not taken
place, I asked of Andrew Little this;

Iain
Parker text sent 14-05-2013 7.23pm"Hey AI get it, your
to busy to touch base because the issue of the issuance of our money
supply has finally erupted into a full blown political brawl down
there in the halls of power."

Andrew
Little replied 14-5-2013 7.26pmHi Iain, no ! I wish ! I get your
messages between meetings & then forget to get back to you. Am
just about to head back to the house now. Can I call tomorrow
evening? Have time between 7.30 & 8.

And
this from Andrew to Iain Parker 18-1-2013 7.38pm after I had
expressed my frustration at the lack of progress in taking the ball
up on the money system funding structures of the nation issue;

"Fair
point. We still have a long way to go to unshackle govt from being
dominated by finance sector interests."

Iain
Parker texts sent;2 - 4- 2015 9.37amHi AndrewDo you
respect my efforts enough to let me know if the merits, or otherwise,
of present money NZ money system funding channel at the wholesale
credit level, are being discussed anywhere, by any elected members,
or hired help of NZ public service in a meaningful way?

2
- 4 - 2015 4.03pmPlease Andrew,A simple yes or no will tell
me most all I need to know in regards too the very straight forward
question I asked today re money policy debate.

Andrew
Little reply;2 - 4 – 2015 10.12pmHi Iain, yes, this
question is discussed but not by everyone and not everyday.

Poor,Reasonable,Exciting.-
How many talking?- Once a week, once a month or once a year?

8
- 4 - 2015Hi AndrewI know you are busy - but it is a
very simple set of questions.

End
of text quotes

No
answer to those particular questions was ever given via text - how
ever we did discuss the questions during the phone call organised in
these texts below;

Iain
Parker sent texts;8-7-2016 10.01amHi AndrewHave you
time today for a chat?

Andrew
replied 8-7-2016 11.08amAm in Somoa today.Back tomorrow. Will
have some spare time around 4pm. Can callthen.

End
of text quotes.

In
the phone conversation organised above Andrew told me that the level
of discussion being had within the halls of power of New Zealand
Parliament could not be described as meaningful and in fact the level
of knowledge of the deeper money system funding structure issue are
so low it is almost impossible to push the issue.In the
conversation I made the comment that essentially the bankers who
control our economy are essentially setting the terms of reference of
what can or can not be openly discussed within New Zealand Parliament
- to which he said "thats a good way of describing it"

For
which you will have to take my word is exactly what he said.

I
have a lot of sympathy for the pressure that pushing the money system
funding structure issue would bring to bare upon Andrew - but at the
same time I don't know that I can ever forgive him for in the end
choosing the path of least resistance as so many before him - given
what he knows the ever growing inequality it means for so many of us.

If
as many as possible can tell any member of the New Zealand Labour
Party that Andrew Little needs to keep taking note of the evidence
that Iain Parker presented him of the shortcomings of the present
money system funding structures of our nation - as he did unto
recently - instead of now acting as though Iain Parker does not exist
and he knows nothing of it - may boost his confidence to push the
issue harder.